Process costing Under the weightedaverage method are the beg

Process costing

Under the weighted-average method, are the beginning or ending percentages of completion used? Why?

explain with your own words

Solution

Under the Weighted Average method, the % completion of beginning Work in process is not used. however, the percentage completion of ending WIP is used.

Under the weighted average method, the units completed is not bifurcated into two parts i.e. units completed from beginning WIP and from current input. Rather, the total units completed is taken in to account without any division and the cost of beginning WIP is added to the current cost to know the cost per equivalent unit. This way the method computes the average cost per unit without taking in to effect the degree of completion of beginning WIP.